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HRO TRANSFORMING THE HR FUNCTION A Fujitsu Services Perspective

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5. 5 Fujitsu Group In summary
A $43.2bn (€32.5bn) leader in IT systems and services for the global marketplace
Core businesses of:
Technology Solutions (System Platforms & Services)
Ubiquitous Product Solutions (PCs, HDDs, etc.)
Device Solutions
Fujitsu has the highest share of the IT services market in Japan, the 3rd highest worldwide Who we are
Fujitsu Group is a US$45 billion (€37 billion) leader in customer-focused IT systems and services for the global marketplace. The cornerstone of the Fujitsu Group's business strategy is an interlocked value chain of Services, Platforms and Technologies.
In IT Services, Fujitsu commands the highest market share in Japan and the third highest worldwide. We have deep expertise in the full array of IT services from IT consulting and systems integration to managed services and outsourcing.
The Fujitsu Group Business
Software & Services
Principal IT Consulting, Application Management, Systems Integration, IT Infrastructure Management, Outsourcing, Network Services (ISP, ASP, etc.)
Business Integration and Systems Management Middleware, Storage Management Software, Package Software (ERP, CRM, etc.), Business Applications l Business Areas
Platforms
Servers, Storage Systems, Personal Computers and Mobile Devices, Storage Devices & Peripherals, Optical Transport Solutions Mobile and Wireless Systems, Submarine Network Solutions, IP Network Solutions, IP Telephony and VoIP, Retail & Financial Products
Electronic Devices
Semiconductors, Compound Semiconductors, Media Devices, Electromechanical Components, Displays.Who we are
Fujitsu Group is a US$45 billion (€37 billion) leader in customer-focused IT systems and services for the global marketplace. The cornerstone of the Fujitsu Group's business strategy is an interlocked value chain of Services, Platforms and Technologies.
In IT Services, Fujitsu commands the highest market share in Japan and the third highest worldwide. We have deep expertise in the full array of IT services from IT consulting and systems integration to managed services and outsourcing.
The Fujitsu Group Business
Software & Services
Principal IT Consulting, Application Management, Systems Integration, IT Infrastructure Management, Outsourcing, Network Services (ISP, ASP, etc.)
Business Integration and Systems Management Middleware, Storage Management Software, Package Software (ERP, CRM, etc.), Business Applications l Business Areas
Platforms
Servers, Storage Systems, Personal Computers and Mobile Devices, Storage Devices & Peripherals, Optical Transport Solutions Mobile and Wireless Systems, Submarine Network Solutions, IP Network Solutions, IP Telephony and VoIP, Retail & Financial Products
Electronic Devices
Semiconductors, Compound Semiconductors, Media Devices, Electromechanical Components, Displays.

6. 6 Why do organisations consider HRO?

7. 7 Key drivers stated by clients

8. 8 What is HRO?

9. 9 What sort of HR function?

10. 10 The outsourcing attitude gap

11. 11 What makes a good HRO partnership Clarity of vision
Senior stakeholder champion
Evidence of rapid decision-making in the past
IT literacy of employees
Clearly defined HR policies – the “rules”
Clear ownership of HRO programme
Agreed benefits / outcomes / measures
Prepared to work as a partnership
Prepared to develop services over time
Understands potential impact on employees and line managers as well as the retained HR organisation
Prepared to commit for at least 5 years

12. 12 What processes can we outsource?

13. 13 Rocket Science?

14. 14 But do we know how it really works?

15. 15 Example of an HR Process Taxonomy

16. 16 Rethink HR processes as business processes

17. 17 Cost control is a common theme Cost savings are not as large as expected base on whole life costs
Only 30% of companies moving to BPO achieve their cost savings targets
SLAs can drag the service down to the lowest acceptable quality
Service providers are not good at managing customer expectations
Every last minute change increases the risk of failure, even if the service provider agrees to it
Service providers may promise services that are beyond their current capability
You will discover stuff done by HR that isn’t documented and therefore is not in scope
What damages the cost savings?
Major ERP solutions can be restrictive leading to a desire to customize (£££)
Poor data moved form old systems is replicated in new HR system
Timescales to “go-live” are often underestimated by both parties
Resistance to change is badly managed

18. 18 But some clients report benefits Reduction in HR operating costs of between 20% - 40%
Access to improved management information, and performance metrics
Improvements in HR service quality and introduction of e-HR service models
Increase productivity within the HR department, e.g. reduction in number of HR staff per employee
Enable internal HR staff to become “business partners” and move away from spending the majority of their time on low impact administrative, transactional tasks
More predictable cost base for service delivery
Improved and consistent HR vendor management
Consolidation of HRO function into regional (and potentially global) shared service centres
Increase in organisations’ employee satisfaction with employee services

19. 19

20. 20 Service Level Agreements Measuring for measurement sake?
Decide those that are important to you – understand what will make an impact
What level of service do you need?
What timescales do you apply to achievement?
Long lists of SLAs and KPIs make for a lot of monitoring and reporting work – is it adding value?